The fact that the production function relating output to capital becomes flatter as we move from left to right means that
A) the marginal product of labor is positive.
B) the marginal product of capital is positive.
C) there is diminishing marginal productivity of labor.
D) there is diminishing marginal productivity of capital.
D
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If consumers view the output of any firm in a market to be identical to the output of any other firm in the market, the demand curve for the output of any given firm
A) will be identical to the market demand curve. B) will be horizontal. C) will be vertical. D) cannot be determined from the information given.
An efficiency wage is a wage that:
A. most unionized workers negotiate to get rid of. B. is set right at market equilibrium which creates an efficient labor market. C. the government sets deliberately above the market rate to increase equity. D. is deliberately set above the market rate to increase worker productivity.
Recall the Application about the Native American Tribes in Michigan that had a monopoly in casino gambling to answer the following question(s).Recall the Application. The tribes agreed to pay the state a share of their profits in exchange for being granted a monopoly in casino gambling. What economic concept does this illustrate?
A. profit maximization B. rent seeking C. irrational behavior D. None of these